(Reuters) -India’s Tata Technologies reported a smaller-than-expected revenue for the fourth quarter, hurt by slowing global demand for electric vehicles.
Tata Technologies provides engineering and technology services to automobile, aero and heavy machinery makers.
The company’s consolidated revenue from operations dropped 1.2% to 12.86 billion rupees ($150.6 million) in the January-to-March quarter.
Analysts, on average, had expected revenue of 13.13 billion rupees, as per data compiled by LSEG.
Revenue from its technology solutions segment dipped 14.5%, while its services segment revenue rose 2.9%.
Engineering, research, and development (ER&D) firms have been grappling with slower decision-making in the auto sector, largely driven by concerns over U.S. tariffs, weak auto growth in China, sluggish EV adoption and automakers scaling down electrification targets as a result.
Fellow Tata Group company and peer Tata Elxsi, earlier in the month, missed quarterly estimates as its top customers in the auto industry paused a number of projects due to tariff issues.
Tata Technologies’ net profit rose to 1.89 billion rupees from 1.57 billion rupees a year ago, helped by an uptick in its other income.
Shares of the company closed 3.4% lower ahead of results.
($1 = 85.4210 Indian rupees)
(Reporting by Aleef Jahan in Bengaluru; Editing by Sonia Cheema and Mrigank Dhaniwala)
Comments